teleconferencia apresentacao 1 t07 eng

18
1Q07 RESULTS Teleconference May 10, 2007

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Page 1: Teleconferencia Apresentacao 1 T07 Eng

1Q07 RESULTSTeleconference

May 10, 2007

Page 2: Teleconferencia Apresentacao 1 T07 Eng

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Safe Harbor - Disclaimers

This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of CCDI and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements.

Although CCDI believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to CCDI’s management, CCDI cannot guarantee future results or events. CCDI expressly disclaims a duty to update any of the forward-looking statements.

Page 3: Teleconferencia Apresentacao 1 T07 Eng

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INITIAL PUBLIC OFFERING

Date: January 31, 2007

Primary and Secondary Offering

Share Price: R$ 14.50

Deal Volume: R$ 522 million

Net Proceedings: R$ 478.5 million

Closing Date: February 22, 2007

Page 4: Teleconferencia Apresentacao 1 T07 Eng

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Sector Perspectives

Economic stability maintained; macro sector very favorable

Real Estate Credit Expansion fuels sales

Longer Terms

Decreased interest taxes

New segments/classes being contemplated

New legal framework

Huge pent-up demand

HOWEVER, 1Q07 was characterized by few new real estate launchings

Page 5: Teleconferencia Apresentacao 1 T07 Eng

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Operational Performance - Launchings

Second Launching in the Península de São Lourenço

Condomínio Cassis

Bertioga (SP)

Total usable area (m2): 16,527

Units: 71

VGV: R$ 71.0 million

100% CCDI

Page 6: Teleconferencia Apresentacao 1 T07 Eng

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Operational Performance - Launchings

33.0

71.4

1Q06 1Q07

VGV LAUNCHED (R$ million)

+116%

UNITS LAUNCHED

80

71

1Q06 1Q07

-11%

Page 7: Teleconferencia Apresentacao 1 T07 Eng

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Operational Performance – Units for sale

500 500 407 407

71 164

2006 LAUNCHINGS UNITS SOLD 1Q07

UNITS FOR SALE

114 148

370

241

1816

2006 1T07

Delivered Units Units under Construction Pre-Construction Units

UNITS FOR SALE

Page 8: Teleconferencia Apresentacao 1 T07 Eng

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171.3

87.3

2006 1Q07

CONTRACTED SALES(R$ million)

51%

92

164

1Q06 1Q07

UNITS SOLD

+78%

3,260.5

3,295.7

2006 1Q07

AVERAGE SALES PRICE(R$/m2)

+1%

Operational Performance – Contracted Sales

29.1

87.3

1Q06 1Q07

CONTRACTED SALES(R$ million)

+200%

Page 9: Teleconferencia Apresentacao 1 T07 Eng

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Selective Acquisition of new areas

Strategy: to seek for swaps to maximize capital utilization

New cities, new segments

Operational Performance – Land Acquisition

Land Name m2 Place

Potential

VGV

(R$ milion)

Swap

Type

Swap

Percentage (1)

Segment

(2)

Vila Rica 1,389 Santos (SP) 30 --- 0% Medium

Q155 8,855 Jardim Sul 43 Financial 100% Medium

Morumbi 10,098 São Paulo 38 Financial 88% Luxury

Aldeia da

Serra

752,927 Aldeia da

Serra (SP)

120 Financial 100% Mid-Low

Pinheiros 3,920 São Paulo 33 Financial 50% High

Ponta da Praia 6,209 Santos (SP) 25 Physical 88% Mid-High

Enseada 21,104 Guarujá (SP) 78 --- 0% Luxury

Total 804,502 367 Average: 85%

Page 10: Teleconferencia Apresentacao 1 T07 Eng

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Financial Performance: Gross Income

7.8

24.4

46.1

1Q05 1Q06 1Q07

CAGR: +144%

GROSS REVENUES (R$ million)

1.4

4.9

9.9

1Q05 1Q06 1Q07

GROSS INCOME (R$ million)

CAGR: +162%

19.521.2

22.4

1Q05 1Q06 1Q07

GROSS MARGIN (%)

+2,9 p.p.

Page 11: Teleconferencia Apresentacao 1 T07 Eng

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Financial Performance: Revenues and Results to be recognized

173.6

244.9

1Q06 1Q07

REVENUES TO BE RECOGNIZED(R$ million)

+41%.

42.5

60.1

1Q06 1Q07

RESULTS TO BE RECOGNIZED(R$ million)

+41%.

24.5 24.5 24.8 24.5

1Q06 1Q07 4Q06 1Q07

MARGINS TO BE RECOGNIZED (%)

Page 12: Teleconferencia Apresentacao 1 T07 Eng

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Margin Analysis

Net Revenue $100

Construction Works & Others $46

Land $15

Gross Profit $32

Gross Margin 32%

CCDI Typical Development

Net Revenue $88

Construction Works & Others $ 46

Gross Profit $42

Gross Margin 48%

16 percentage points of margin difference

Other Players

Construction Margin $ 4

VGV $103 VGV $103

Broker Fees $ 3 Broker Fees $ 0

Financing Cost $ 3 Financing Cost $ 0

Construction Margin $ 0

Land $ 0

A typical CCDI residential development

Land $ 0 Land $ 15

Page 13: Teleconferencia Apresentacao 1 T07 Eng

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Recognition, in the quarter, of R$ 26.2 million in non-recurring, IPO-related expenses.

SG&A growing because of theforecasted operational expansion ofthe Company for 2007 and 2008.

Financial Performance: EBITDA and Income

-0.6

2.8

2.1

1Q05 1Q06 1Q07

EBITDA (R$ million)

(1.1)

2.2

(12.9)

1Q05 1Q06 1Q07

NET INCOME (R$ million)

Page 14: Teleconferencia Apresentacao 1 T07 Eng

FOLLOWING THE GROWTH PATH

Page 15: Teleconferencia Apresentacao 1 T07 Eng

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Principais Diferenciais Competitivos

Pure Real EstatePlayer

CapitalOptimization

DeveloperFocus

Margins from construction not consolidated in the Company’s Balance Sheet

(-) Smaller Gross Margin

(+) Maximum Guaranteed Price

No internal brokerage structure

(-) Gross Revenues are net of brokerage commissions

(+) Agility, Flexibility and networking

Project Leverage

(-) Smaller Gross Margins

(+) Increased return on the project

Real estate financing/securitization of receivables

No post-delivery credit risk

Commercial developments will be sold after leasing

It is not our business to keep the property for leasing purposes

Focus on higher value-added activities

Maximum capital utilization

Differentiated margins

Page 16: Teleconferencia Apresentacao 1 T07 Eng

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LAND BANK

R$ 5.5 billion potential VGV potencial (100% CCDI)

2.4 millio sqm for future developments

~90% acquired via financial swaps

On-going negotiations: R$ 4 billion in potential VGV (success rate estimate at approximately 50%)

3.6

0.9

0.20.4

0.20.2

RMSP SP - Inner Cities

and Shoreline

Rio de Janeiro

Residential Commercial Lots

LANDBANK – POTENTIAL VGVType of Development - (R$ billion) – 100% CCDI

0,69

1,18

0,970,86

0,70

100 to 200 200 to 350 350 to 500 500 to 1000 over 1000

LANDBANK – POTENTIAL VGVResidential in R$ 000 per unit - (R$ billion) – 100% CCDI

16% 27% 22% 20% 16%

Page 17: Teleconferencia Apresentacao 1 T07 Eng

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Lançamentos Futuros

Land Bank fully in-house

Planned, scheduled in phases launchings , with close management of offer/demand

for every project

Anticipated product development, marketing (media and research) and approval

and permits works

1.41.4

1.7

1.0

2007 2008 2009 2010 and later

LANDBANK – POTENTIAL VGVLaunchings - (R$ billion) – 100% CCDI – Accumulated

Page 18: Teleconferencia Apresentacao 1 T07 Eng

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Investment Case

CCDI is the fastest growing and most agile company in the sector

Brand Recognition

Land Bank

Experienced Management

No Construction Risk

Financial Efficiency

Agility